Wednesday, December 17, 2025
Markets skilled a heavier sell-off at the moment, after beginning the session on the opening bell flat-to-up. By 11am or so, the Dow and the small-cap Russell had been in adverse territory; the Nasdaq and S&P 500 had already gotten there. The Dow closed -228 factors, -0.47%, and it bought off simple. The S&P 500, Nasdaq and Russell 2000 had been all down -1.16%, -1.81% and -1.14%, respectively.
This marks the fourth-straight down-day for the blue-chip Dow and the excellent S&P 500. The Russell 2000 has solely traded down since closing at an all-time excessive final Thursday. The Nasdaq has dipped into the crimson over the previous month of buying and selling, and down -6.5% from its all-time excessive again in late October of this 12 months.
The AI commerce had been preserving markets buoyant for a lot of 2025; now that the 12 months is coming to an finish, buyers are apparently trying towards 2026 with a warier eye than we’ve seen — though we’ve solely had one “Santa Claus Rally” prior to now 5 years, in 2023. AI shares have taken it on the chin, together with Oracle ORCL -5.4%, Broadcom AVGO -4.5% and NVIDIA NVDA -3.8%. Additionally, Caterpillar CAT dropped -4.7% and Lennar Dwelling LEN fell -4.4%.
Even Tesla TSLA, recent from an all-time closing excessive simply yesterday, suffered a heavy spherical of profit-taking at the moment, because the EV chief slid -4.6% on the day. Tesla has additionally been named by the California DMV as having offered deceptive claims about its autos, claiming them to have “full self-driving functionality” once they don’t, precisely. The DMV adopted this place from a decide’s ruling final month, and has been given 60 days to take down such claims.
Micron Posts Large Beats in Q1 Report
After at the moment’s shut, Zacks Rank #1 (Robust Purchase)-rated Micron MU blew the doorways off expectations in its fiscal Q1 report. Earnings of $4.78 per share swept away the paltry Zacks consensus of $3.91, whereas revenues of $13.64 billion zoomed previous the $12.74 billion anticipated. Subsequent-quarter steerage can also be considerably larger than we had beforehand forecast.
Working money stream rose +47% quarter over quarter to $8.41 billion, and is greater than double the $3.24 billion it had reported within the year-ago quarter. Micron doubled its cloud reminiscence enterprise 12 months over 12 months to $5.28 billion, on improved +66% gross margins. Shares are up +5% in late buying and selling, including to its stupendous +168% rise in share value from the beginning of the 12 months.
November CPI Inflation Fee Hits the Tape Thursday Morning
Tomorrow forward of the opening bell, we not solely get regular Weekly Jobless Claims, however the government-shutdown-delayed Shopper Worth Index (CPI) for November (skipping October fully). We already hear noises from some market individuals in regards to the accuracy of this upcoming information 16 hours earlier than it’s launched, however consensus is at present for a +3.1% Inflation Fee (year-over-year CPI, headline) — the very best since Might of 2024. Core CPI 12 months over 12 months is anticipated at +3.0%.
Now we have already seen the erosion to the labor market over the previous 12 months yesterday with the Employment State of affairs report. If we additionally see CPI numbers persevering with to tick up — and we’ve solely gone up or stayed pat every month since April’s low +2.3% — that could be a foul signal for the economic system getting ready to a brand new 12 months. “Might” be; it’s not sure. Even nonetheless, promoting off the tops of this wholesome 2025 market appears extra cheap if buyers are questioning what’s to return.
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Caterpillar Inc. (CAT) : Free Inventory Evaluation Report
Micron Know-how, Inc. (MU) : Free Inventory Evaluation Report
NVIDIA Company (NVDA) : Free Inventory Evaluation Report
Oracle Company (ORCL) : Free Inventory Evaluation Report
Lennar Company (LEN) : Free Inventory Evaluation Report
Broadcom Inc. (AVGO) : Free Inventory Evaluation Report
Tesla, Inc. (TSLA) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
